The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Zillow met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins grew across the board.
Zillow chalked up revenue of $31.9 million. The seven analysts polled by S&P Capital IQ anticipated sales of $31.9 million on the same basis. GAAP reported sales were 67% higher than the prior-year quarter's $19.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.13. The nine earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. GAAP EPS were $0.07 for Q3 versus -$0.02 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 88.6%, 480 basis points better than the prior-year quarter. Operating margin was 7.2%, 130 basis points better than the prior-year quarter. Net margin was 7.3%, 1,030 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $32.9 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $115.4 million. The average EPS estimate is $0.30.
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 222 members out of 416 rating the stock outperform, and 194 members rating it underperform. Among 153 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 55 give Zillow a green thumbs-up, and 98 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zillow is outperform, with an average price target of $44.67.
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